Category Archives: Securitization

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Liquidity Coverage Ratio Rule: Birds Gotta Fly, Fish Gotta Swim…and Regulators Gotta Regulate

With apologies to Jerome Kern and Oscar Hammerstein, and in the afterglow of a relatively amiable final AB Rule, we are reminded this week that our business remains hogtied to a regulatory establishment that can’t seem to stop regulating.  When a member of the regulatory apparatchiki hears someone observe, “Well, if I don’t get out … Continue Reading

Fed Issues Additional Guidance on Extended Conformance Period – Be Careful What You Ask For

A few steps forward and a giant leap back.  This familiar phrase might be the perfect summary of the CLO market’s Volcker Rule roller coaster since December 2013.  A few weeks ago we wrote about the Federal Reserve Board’s (the “Fed”) less than satisfying “fix” to address what the market has perceived as one of … Continue Reading

CRE Securitization: Rehabilitation Still In Progress

During the past several years, CRE Securitizations were airbrushed off the financial products reviewing podium like a discredited Politburo member. Not here, never ever here; nope, never heard of it. This was a mistake rooted in populous politics and the conflation of the tools of finance with the tool users (okay, with some very unhelpful … Continue Reading

CLOs under the Volcker Rule: New Exemptions, New Issues, New Obligations – Part II

In our previous post we discussed some of the structural challenges and opportunities facing CLO market participants since the Final Rule was released in December.  Today we tackle the age old question, “what is an ownership interest”.  The question is important because the tentacles of Volcker’s provisions prohibit banking entities from holding ownership interests in covered … Continue Reading

CLOs under the Volcker Rule: New Exemptions, New Issues, New Obligations – Part I

Befitting the holiday season the regulators recently decided to bestow upon us all the much anticipated (dreaded?) Volcker Rule. At 1100 pages of truly riveting reading material, Volcker has certainly given all of us plenty to wade through during these recent cold winter weeks and much to the surprise of the structured credit industry there … Continue Reading

The recently finalized “Bad Actor” rules and their applicability to CLO transactions

Section 926(1) of the Dodd-Frank Act required the Securities and Exchange Commission (“SEC”) to adopt rules that disqualify securities offerings involving certain felons and other “bad actors” from reliance on Rule 506 under Regulation D of the Securities Act of 1933 (“Securities Act”). New paragraph (d) of Rule 506 was adopted pursuant to the mandate … Continue Reading

TO THE BARRICADES! (AGAIN)

Out of the dimensionless emptiness of the information vacuum surrounding Dodd-Frank risk retention that enveloped us early this year, the word is now spreading, through what you might charitably describe as informal communications (leaks), that the joint regulatory committee responsible for the risk retention rules is about to re-propose something, perhaps as early as September.… Continue Reading

IMN’s REO-to-Rental Forum 2013: Welcome to Miami

The Miami Heat’s home playoff games are not going to be the only events drawing attention to sunny Miami next week as IMN hosts its annual REO-to-Rental Forum in Miami. As we have previously discussed numerous times (here, here and here, and OnPoint Updates here and here), the REO-to-Rental asset class has become quite a hot … Continue Reading

CLO Update: New FDIC Rules on “Higher Risk Securitizations”

The FDIC’s new rules (promulgated per the requirements of the Dodd-Frank Act) for calculating deposit insurance assessments for insured depository institutions, including "large institutions" and "highly complex institutions," are set to become effective on April Fool’s Day, 2013. No kidding. As institutions of this type are active investors in CLOs, particularly the “AAA”-rated tranche of CLOs, … Continue Reading

Dechert OnPoint Details Recent SEC Report on Credit Ratings for Structured Finance Products

While we’re on the topic of Dodd-Frank rules and regs that could have a significant impact on the securitization market, the SEC recently reported the findings of a study it conducted regarding assigned credit ratings for structured finance products – a report required under Section 939F of the Dodd-Frank Act that will subsequently lead to … Continue Reading

It’s Time to Revisit Risk Retention

Two and a half years after Dodd-Frank and almost two years after the first hurriedly issued proposed rules, the six agencies (Department of Housing and Urban Development, Federal Deposit Insurance Corp., Federal Housing Finance Agency, Federal Reserve, Office of the Comptroller of the Currency, and the U.S. Securities and Exchange Commission) charged with creating risk retention … Continue Reading

ASF 2013 is Underway

Arguably the largest gathering of capital markets professionals in the world, ASF 2013 had over 5,300 registrants as of Monday morning according to Tom Deutsch, Executive Director, American Securitization Forum. Vegas is bustling and it’s always a pleasure to conveniently be out of town when there’s messy weather back east.… Continue Reading

The Regs that Bind

In the world of magical realism which produced that paragon of legislative genius known as Dodd-Frank, I have had energy for only a bit of remote intellectual annoyance over the impact of the part of the Rule commonly known as “Volcker”.… Continue Reading

Unintended Consequences Avoided? CFTC Provides Relief for Certain Securitization Vehicles

Last Thursday, the U.S. Commodity Futures Trading Commission (“CFTC”) responded to ASF’s and SIFMA’s requests for relief from the new CFTC rules which implemented certain Dodd-Frank amendments that brought swaps within the purview of the CFTC.  The new rules, which took effect on October 12, 2012, threatened to regulate many securitization vehicles as commodity pools … Continue Reading

Eminent Domain Proposals: Federal Housing Finance Agency Concerned

Last week, the Federal Housing Finance Agency (“FHFA”) has joined the chorus of opponents, expressing “significant concerns about the use of eminent domain to revise existing financial contracts”.  We at CrunchedCredit have recently covered the eminent domain proposals being considered by Chicago and San Bernardino County.  … Continue Reading
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